Correlation Between Cegedim SA and Coheris SA
Can any of the company-specific risk be diversified away by investing in both Cegedim SA and Coheris SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cegedim SA and Coheris SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cegedim SA and Coheris SA, you can compare the effects of market volatilities on Cegedim SA and Coheris SA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cegedim SA with a short position of Coheris SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cegedim SA and Coheris SA.
Diversification Opportunities for Cegedim SA and Coheris SA
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cegedim and Coheris is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cegedim SA and Coheris SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coheris SA and Cegedim SA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cegedim SA are associated (or correlated) with Coheris SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coheris SA has no effect on the direction of Cegedim SA i.e., Cegedim SA and Coheris SA go up and down completely randomly.
Pair Corralation between Cegedim SA and Coheris SA
Assuming the 90 days trading horizon Cegedim SA is expected to under-perform the Coheris SA. But the stock apears to be less risky and, when comparing its historical volatility, Cegedim SA is 1.37 times less risky than Coheris SA. The stock trades about -0.04 of its potential returns per unit of risk. The Coheris SA is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 509.00 in Coheris SA on September 14, 2024 and sell it today you would earn a total of 341.00 from holding Coheris SA or generate 66.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Cegedim SA vs. Coheris SA
Performance |
| Timeline |
| Cegedim SA |
| Coheris SA |
Cegedim SA and Coheris SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cegedim SA and Coheris SA
The main advantage of trading using opposite Cegedim SA and Coheris SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cegedim SA position performs unexpectedly, Coheris SA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Coheris SA will offset losses from the drop in Coheris SA's long position.| Cegedim SA vs. Bonduelle SCA | Cegedim SA vs. Boiron SA | Cegedim SA vs. Assystem SA | Cegedim SA vs. Lectra SA |
| Coheris SA vs. Solutions 30 SE | Coheris SA vs. BigBen Interactive | Coheris SA vs. SA Catana Group | Coheris SA vs. Solocal Group SA |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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